§ Mr. Trotterasked the Chancellor of the Exchequer in what circumstances a contractor can be forced to pay to the Inland Revenue tax he has failed to deduct from a payment made to a subcontractor unless the Revenue has already secured the tax from the contractors; what are the reasons for this practice; and whether he will instruct the Revenue to cease the practice forthwith.
§ Mr. Peter Rees,pursuant to his reply [Official Report, 11 July 1979; Vol. 970, c. 210], gave the following answer:
A contractor is liable in law to account to the Revenue for sums which he should have deducted from payments to uncertificated subcontractors. He may, however, be relieved of this liability if he can satisfy the Revenue that, although he failed to make the deductions, he acted in good faith and took reasonable care to comply with the rules of the scheme.
If my hon. Friend has a particular case in mind, I would be happy to look at it.